The news: US retail sales fell more than expected in May from April, the latest sign that tariff fears and economic volatility are affecting consumer spending. Our take: While May’s retail sales data largely show that consumers are hanging in, the situation remains unpredictable—especially given the fact that tariff-driven price hikes have yet to kick in for a multitude of everyday purchases, including groceries and apparel.

The news: Auto parts maker Marelli filed for Chapter 11 bankruptcy, making it one of the first high-profile casualties of the Trump administration’s tariffs. Our take: Not all of Marelli’s problems can be blamed on tariffs. But tariffs and uncertainty have a way of magnifying the cracks in a company’s business—cracks that will become harder to paper over the longer the Trump administration sticks to its hardline tariff policies.

The news: The UK economy contracted by the most in 18 months in April due to the twin pressures of tariffs and tax increases. Our take: The UK economy’s contraction in April sets the stage for another year of tepid growth. Despite a highly publicized (and yet to be finalized) trade deal with the US, macroeconomic uncertainties are set to weigh heavily on corporate and consumer sentiment, while rising household and business expenses will limit investment and consumer spending.

On today’s podcast episode, we discuss how to get folks to buy something they can’t go and see in a store, how D2Cs should be thinking about generative AI, and how one DTC is negotiating the tariff minefield. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Principal Analyst Sky Canaves and CEO and president of Eyebuydirect Sunny Jiang.

The insight: Clothing rental services are in the midst of a resurgence. Rent the Runway ended Q1 with a record number of subscribers, while Urban Outfitters-owned Nuuly added 40,000 members in the quarter alone. Our take: It’s taken time for companies to prove that the clothing subscription model can be sustainable. While Nuuly was the first to reach profitability, Rent the Runway’s rebound shows that there is an appetite for rental services that can deliver high-quality products at an affordable price point, as well as capitalize on consumers’ desire for newness.

The insight: Discounters are experiencing a resurgence as concerns about rising prices and economic stability spur shoppers of all income levels to seek out bargain retailers. Our take: The uncertain environment in many ways benefits Dollar General, Dollar Tree, and Five Below, whose value initiatives are enabling them to win spending from cautious consumers. But—as with the broader retail industry—tariffs are a costly challenge for all three, particularly as they try to minimize price hikes and maintain their value advantage.

The news: Shein’s and Temu’s influence in the US is fading quickly as both companies cut ad spending and look to Europe for growth. Our take: Shein and Temu are finding that the billions of dollars they plowed into US advertising have not been enough to secure US customers’ loyalty in the face of higher prices. But rather than find ways to extend the longevity of their US businesses, both companies are fleeing to Europe to take advantage of the (currently) more favorable trade environment.

The news: Spirit Halloween canceled its annual kickoff event due to “international disruptions and supply chain challenges,” it said in a social media post. Our take: While the retailer did not directly cite tariffs, it is the latest warning sign that President Donald Trump’s “Liberation Day” duties could result in emptier shelves during key shopping seasons.

The insight: The gap between Target and its mass merchant competitors Amazon and Walmart is widening. While Amazon and Walmart are consolidating their grip on consumer spending after investments in value and convenience, Target’s largely discretionary assortment and diversity, equity, and inclusion (DEI) controversies are sharply curbing its appeal. Our take: Shoppers are prioritizing necessities over discretionary goods and favoring retailers that offer value and convenience.

Dollar General benefits from “trade-in” behavior among wealthier shoppers: The retailer boosted its outlook as discretionary spending from higher-income consumers offset lower-income caution.

Chinese consumers’ travel spending softened during a recent holiday: That’s a clear sign that confidence is strained due to trade tensions with the US.

Travel demand is becoming harder to predict: Consumers are waiting until the last moment to make plans as uncertainty complicates spending decisions.

Best Buy will stick to its tariff playbook despite court rulings: The retailer is doing its best to ignore the noise and focus on how best to serve its customers.

Abercrombie & Fitch opts not to stock up on inventory despite tariff risks: The retailer is staying lean in order to chase trends and maximize full-price sales.

Tariffs overshadow Macy’s turnaround progress: Sales fell less than expected on strength at Bloomingdale’s and Bluemercury, but pressures on discretionary spending could add to department store headwinds.

Temu parent PDD’s profits fell 47% in Q1 as global and domestic challenges pile up: The company’s operating model is ill-equipped for today’s protectionist trade policies.

The summer travel season will look very different this year: More trips are planned, but vacations will be shorter and cheaper.

Restaurant visits are declining as consumers worry about their finances: Uncertainty is pushing customers to be more discerning about where they spend their food dollars.

Nike resumes selling on Amazon as tariffs threaten its turnaround: The brand is betting that an expanded retail presence will soften the blow of higher prices.

Ralph Lauren and Canada Goose defied luxury slowdown in Q1: But tariffs and uncertainty could reverse that momentum.